Sany equipment under construction at Shanghai Tower
 

　　During the reporting period, sales of all the company's product lines increased significantly compared with 2016, and the off-season was not weak throughout the year. Among them, concrete machinery achieved sales revenue of 12.6 billion yuan, up 32.59% from 2016, firmly holding the position of the world's No. 1 brand. Excavation machinery sales revenue was 13.67 billion yuan, up 82.99% from 2016; in the domestic market, it has been the sales champion for seven consecutive years, with a market share of over 22%, and in particular its market share in medium and large excavators increased rapidly.

　　At the same time, the company's market position in hoisting machinery, piling machinery, road machinery and other products continued to consolidate, with revenue up 93.5%, 145.52% and 53.59% respectively from 2016, and market share steadily increased; among them, the market share of truck cranes above 100-ton class and crawler cranes above 50-ton class ranked first in the industry. At present, Sany Heavy Industry's leading products such as excavators, large-tonnage cranes, rotary drilling rigs and complete sets of road equipment have become China's No. 1 brands.
　　Thanks to the improvement in operational quality and sales growth, the company's profitability improved significantly, with an overall gross margin of 30.07%, up 3.86 percentage points year on year; net profit attributable to shareholders of the listed company was 2.092 billion yuan, up 928.35% year on year.

　　Operational quality significantly improved, at the best level in history

Sany Heavy Industry production workshop

　　The annual report noted that in 2017 the company effectively grasped risks and cycles, paid more attention to operational quality and risk control, established a sound risk control system, and achieved a qualitative improvement in operational quality, at the best level in history.

　　During the reporting period, the company's net cash flow from operating activities was 8.565 billion yuan, a sharp increase of 163.57% year on year, exceeding the highest level in history. The accounts receivable turnover ratio rose from 1.19 in the previous year to 2.10; through strong risk penetration and control measures, overdue payment risks were brought under control, the total amount of overdue payments dropped significantly, and the overdue rate was kept at a low level.
　　At the same time, the company's inventory turnover ratio rose from 2.90 in the previous year to 3.87; the period expense ratio dropped significantly by about 3 percentage points, among which interest expenses decreased by 350 million yuan from the previous year, and management expenses as a share of sales revenue fell by 2.5 percentage points. The asset-liability ratio dropped by 7.19 percentage points from the beginning of 2017, and the company's financial structure is very sound.
　　New progress in internationalization, overseas performance grows substantially
 

Sany equipment under construction in Zambia
 

　　In 2017, the company firmly advanced internationalization and deepened its presence in the "Belt and Road" regions, and its overall industrial layout was highly consistent with the "Belt and Road" regions. The annual report shows that Sany Heavy Industry achieved international sales revenue of 11.618 billion yuan, up 25.12% year on year, leading the industry.
　　At the same time, the operational quality of the company's major overseas regions continued to improve, with comprehensive growth in performance indicators at Putzmeister, Sany America and Sany India; Putzmeister's sales revenue maintained steady growth, and Sany India broke through the 1 billion yuan sales scale.
　　During the reporting period, the company also advanced the transformation of its international marketing system, adjusted overseas sales organizations and regions of responsibility, and improved its response and service capabilities in overseas markets, with substantial improvements in both efficiency and effectiveness. The company also actively promoted the localization of overseas talent and manufacturing, and the localization of management teams at Putzmeister, the United States and India was basically completed.
 

Fire truck products independently developed by Sany
 

　　In 2017, the company continued to strengthen R&D and innovation in main machine products and key components, accelerated product upgrading and the research and development of core components, and further enhanced its core competitive advantages. The annual report shows that in 2017 the company's R&D expenditure was about 1.9 billion yuan, accounting for 5.00% of operating revenue, up 70.39% from 2016. As of the end of 2017, the company had cumulatively applied for 7,501 patents and been granted 6,218 patents, ranking first in the domestic industry in both applications and grants.
　　During the reporting period, the company successively launched a number of main machine products at internationally advanced levels, including the SY750H heavy-duty mining excavator, the SCC1000 crawler crane with the industry's first hybrid main boom in its tonnage class, and the new-generation "Press Fast" SSR220AC-8 road roller, further expanding its market competitive advantage.
　　At the same time, the company's independently developed new business transformations, such as aerial fire trucks, environmentally friendly intelligent dump trucks, business incubators and military industry, achieved substantive progress. Among them, aerial fire trucks and intelligent dump trucks have entered the stage of mass production and sales, with sales realized in more than 20 provinces across the country. Hunan Sany Business Incubator Co., Ltd. had incubated more than 200 enterprises cumulatively during the reporting period and was approved by the Ministry of Science and Technology as a "National Specialized Maker Space for Intelligent Manufacturing."